London, June 22 (Bloomberg) -- Celltech Group Plc, the U.K.'s largest biotechnology company, will likely turn to European drug companies to sell its Medeva vaccine unit after CSL Ltd. of Australia withdrew from the bidding, analysts said.
U.K.-based PowderJect Pharmaceuticals Plc and Active Biotech AB of Sweden would be a good fit for the business, which Celltech acquired last year when it bought Medeva for $1.1 billion. Biochem Pharma Inc. of Canada might also be interested, they said.
Celltech is looking to sell the vaccine business as it concentrates on developing its own specialized products for cancer, heart disease and osteoporosis. While Celltech is negotiating with one less bidder, it's not desperate for the money, analysts said.
``Celltech doesn't need the financing,'' said Steven De Proost, a Smeets Securities NV analyst with a ``buy'' rating on the company. ``They have a positive cash position.''
Celltech shares fell 22 pence, or 1.8 percent, to 1,220p, while PowderJect shares fell 9p, or 2.3 percent, to 377.5p.
The vaccine unit has sales of about 50 million pounds a year, said Nick Woolf, an ABN Amro analyst who has given his ``top pick'' rating to Celltech.
``It's not a high margin business, but they're not looking for a premium price,'' Woolf said. |
